Discover the DNA of profitability for your business
Are you like most business owners – do you believe you need to take dramatic steps to improve the profitability of your business?
You may believe, for example, that if you want to double your profits, you need to double your sales or halve your costs; you may think that you need to take on more people (but don’t they bring a whole new set of headaches?) or perhaps borrow a whole pile of money (but isn’t debt bad?).
This uncertainty and confusion probably isn’t helpful for your business ambitions and the big dramatic changes you’re considering may be unnecessary right now! More subtle and less dramatic changes may provide a more secure route to sustainable profitable growth.
For one of the best illustrations of small changes making a big impact, consider that we share 98% of our DNA with chimpanzees – Almost the same, but what a difference!
2% one way and we’re spending the rest of our life learning how to crack open a nut whilst 2% the other way and we can perhaps fly a rocket to the moon. You may be surprised to find that the difference between successful and unsuccessful businesses is just as slender.
So are you a business Chimp or a business Champ?
There are seven simple areas that we look at to improve the profitability of your business:
- The number of new leads your business can attract
- Your conversion rate (the quality of leads and your ability to sell)
- How much customers spend (average sales value)
- How often customers buy from you (transaction frequency)
- Your gross profit margins (efficiency)
- How well you control your overhead costs
- How long customers stay loyal to you (customer retention)
One of the things that astonishes most business owners is that if you can achieve a 10% improvement in each of these areas, you’ll achieve a 288% improvement in profitability. Add to this a set of straightforward strategies and controls around cash flow and you’ve just created a model for sustainable profitable growth.
I know this sounds simple – but in reality, when you’re working the day-to-day of your business, it’s anything but. That’s where a little expert advice can help.
Has this article got you thinking about your business and how you want to grab the reins and drive it forward but you struggle to find the time or feel that you lack the skills or knowledge to do so?
Are you looking at your screen wondering how or if Good2Great could possibly help you to build a better future for you and your company?
If so, why not check out free ways to learn more either at a seminar or in a free one-to-one business health check.
OR – perhaps you’re still at the start of your business journey – check out the Business Start Up Bootcamps